![]() The digital payments market in China is a fragmented reality, as in the rest of the world. ![]() These data seem to confirm a penetration of digital payment methods destined to increase in the coming years. Also, it is necessary to consider that the youngest range, between 18 and 34 years, corresponds to 48% of the population. ![]() 73% of Chinese people are between 18 and 44 years of age, this group is most likely to use digital tools in general. Those numbers are likely to grow further if compared to demographic developments in China. Today the ARPU of online sales is around 1,100 dollars, in 2024 it will reach around 1,250 dollars remaining stable until the following year.⁵ According to the most recent available data, from 2021 growth will slow down until at least the year 2025. In 2019 the online ARPU continued to grow, with a slight decline each year until 2020, when the pandemic caused a surge. To confirm this trend, we can analyze the ARPU (Average Revenue Per User), noticing an increase in average revenue both online and in store, with a slight slowdown for the Ecommerce channel. The volume growth of the People’s Republic of China payments is driven by in-store purchases. In particular, digital commerce will reach almost 2 billion dollars by the end of the year, confirming China as the country with the highest volume of transactions globally.⁴ What’s the weight of digital payments on global market volumes? According to data released by Statista, the total value of transactions in the digital payments segment in 2022 comes close to 3.5 billion USD and will reach 5.2 billion in 2027, with an annual increase (CAGR) of 8.25%. Volumes of digital payments in the Chinese market The digitisation of the Chinese population has also strongly involved physical payments, by the first half of 2022 China could count 904 million mobile payment users³ who purchased from digital payment platforms not only in the domestic market but around the rest of the world. A huge number which translates to a great potential in regard to payments, also considering the large number of Chinese communities around the world.Īccording to the report published in June 2022 by CNNIC (China Internet Network Information Center: the administrative agency responsible for Internet affairs under the Ministry of Industry and Information Technology of the People’s Republic of China), China had about 1,050 million internet users¹ and of these over 80% buy online (about 840 million people).² At the end of 2022, the population of the People’s Republic of China, counted over 1.4 billion inhabitants, which represents almost 20% of the world population.
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